Is Amazon (AMZN) a Smart Long-term Buy Now?

Baron Opportunity Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Opportunity Fund returned 17.92% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.93%, while the Russell 3000 Growth Index was up 12.86%. You should check out Baron’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Baron Opportunity Fund highlighted a few stocks and Amazon.Com Inc (NASDAQ:AMZN) is one of them. Amazon.Com Inc (NASDAQ:AMZN) is a technology company. Year-to-date, Amazon.Com Inc (NASDAQ:AMZN) stock gained 67.8% and on December 10th it had a closing price of $3,101.49. Here is what Baron Opportunity Fund said:

“, Inc. is the world’s largest retailer and cloud services provider. Shares were up on strong second quarter revenue metrics – with paid unit growth accelerating to 57%, a startling figure for a company of this scale – as Amazon benefited from recent investments in logistics and distribution to meet increased COVID-19-related demand. Amazon has the unique ability to deliver all the necessities of life safely to your doorstep, including groceries. Amazon also reported a stunning beat in operating profit, with $5.8 billion of operating income, almost six times Wall Street’s expected figure. While e-commerce penetration is rising rapidly and Amazon continues to grow its addressable market by entering new verticals, we continue to view Amazon Web Services as the more material driver of the company given its leadership in the vast and growing cloud infrastructure market and potential to compete in application software in the years to come.”

25 best things to buy on Amazon under $20

25 best things to buy on Amazon under $20 (Photo credit: Pixabay)

Earlier this week, we published an article revealing that RiverPark Advisors is bullish on Amazon.Com Inc (NASDAQ:AMZN) stock. The investment firm believes that the company is likely to benefit from the ongoing coronavirus pandemic.

In Q3 2020, the number of bullish hedge fund positions on Amazon.Com Inc (NASDAQ:AMZN) stock decreased by about 1% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in Amazon’s growth potential. Our calculations showed that Amazon.Com Inc (NASDAQ:AMZN) is ranked #1 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.